Influence of product perception and discounts on the preference of online payment

The increasing mobile penetration and improving payment infrastructure have propelled the growth of digital payments in India. But e-tailers are still struggling with declining growth rates contributed by cash on delivery payments. Despite the enormous research done on various factors of payment infrastructure and their influence on the adoption or use of online payments, the studies have not examined how consumer perception of products and offered discounts can influence their preference towards online payment methods. This study aims to evaluate product perception, discount buying behavior of consumer and cash back related perceptions as motivators of online payments. The data collected through an online survey across India was analyzed using logistic regression. The findings suggest that product perception influences consumers' choice of payment method. It was also found that discount buyers are more likely to prefer online payments and that the awareness of cash back offers improves the preference towards online payments, but additional discounts offered on card payments seem to work far better than cash backs to influence online payment for the purchase.